Resolution No. 4,241

The Central Bank of Brazil, pursuant to art. 9 of Law No. 4,595, of 31 December 1964, hereby announces that the National Monetary Council, at a session held on 28 June 2013, based on arts. 3, item V, 4, item XVII, and 12 of Law No. 4,595, of 1964, on art. 28, § 2, of Complementary Law No. 101, of 4 May 2000, and on Law No. 10,214, of 27 March 2001,

H A S R E S O L V E D :

Art. 1 The Central Bank of Brazil is authorized to carry out a Central Bank Rediscount operation, in the form of a purchase with a resale commitment, intraday and for one business day, of federal government securities registered in the Special System for Settlement and Custody (Selic), with development banks holding a Bank Reserves account, under the terms and conditions set forth in this Resolution.

§ 1 For the purposes of this Resolution, purchase with a resale commitment means the purchase of a security by the Central Bank of Brazil, with a resale commitment, together with the sale of a security by the financial institution, with a repurchase commitment.

§ 2 For the purposes of this Resolution, intraday operation means a purchase with a resale commitment in which the purchase and the corresponding resale occur on the same day.

§ 3 For the purposes of this Resolution, one-business-day operation means a purchase with a resale commitment in which the purchase and the corresponding resale occur with a difference of one business day.

§ 4 The liquidity mechanism referred to in the caput aims to meet liquidity needs during the day or arising from very short-term mismatches in the institution's cash flow.

§ 5 The operations referred to in the caput are granted, at the sole discretion of the Central Bank of Brazil, upon request by the interested financial institution, except for the automatic granting associated with the settlement of an intraday rediscount operation not settled at the end of the operating hours of the Reserve Transfer System (STR).

Art. 2 The federal government securities registered in the Special System for Settlement and Custody (Selic) that are part of the financial institution's own custody position and that are not subject to trading restrictions may be the object of the purchase with a resale commitment operation provided for in this Resolution.

Sole paragraph. The Central Bank of Brazil shall disclose the federal government securities that will be accepted in Central Bank Rediscount operations.

Art. 3 In the purchase with a resale commitment operations referred to in this Resolution, the following trading parameters shall be observed:

• I - purchase price: disclosed daily by the Central Bank of Brazil; and

• II - resale price: purchase price plus an amount corresponding to the application, to the purchase price, of the rate obtained by the composition of the Selic Rate, defined in accordance with the regulations in force, determined for the business day of the operation, with a rate set by the Board of Directors of the Central Bank of Brazil and valid on the date the operation is carried out.

Art. 4 The operation referred to in art. 1, § 2, not settled by the institution at the end of the operating hours of the Reserve Transfer System (STR), shall be settled automatically by the Central Bank of Brazil, on the same day, associated with the simultaneous granting of a new operation of the same nature and with a term of one business day.

Sole paragraph. In the event of an impediment to the completion of the automatic settlement referred to in the caput, the provisions of art. 2-E of Resolution No. 2,949, of 4 April 2002, shall apply.

Art. 5 The financial settlement and the movement in custody accounts of the assets subject to the operations referred to in this Resolution are subject to the rules and operational procedures provided for in the regulations of the respective settlement systems.

Art. 6 The provisions of arts. 2-D and 2-E of Resolution No. 2,949, of 2002, apply to the operations referred to in art. 1.

Art. 7 The Central Bank of Brazil shall issue the rules and adopt the measures necessary for the execution of the provisions of this Resolution.

Art. 8 This Resolution enters into force on the date of its publication.

Alexandre Antonio Tombini President of the Central Bank of Brazil